The Ivey
Business School Purchasing Managers Index (PMI), measuring Canada’s economic
activity, declined by 9.4 points to 48.2 in August from an unrevised 57.6 in July. The latest
print pointed to the first contraction in the private sector’s activity since July
2023 (48.6).
The 50-point mark separates expansion from contraction.
Economists had anticipated
the indicator to slip to 55.5 in August.
According to the report, the deliveries gauge dropped
by 1.6 points to 44.8, indicating shrinkage
in deliveries for the fifth straight month. Meanwhile, the employment index fell by 1.4 points to 54.7,
indicating continuing growth in employment albeit at a weaker pace than in the
previous month. The
inventories measure decreased by 1.2 points to 53.6, indicating inventories increased for the third
consecutive month in August albeit at a slightly softer pace than in the
previous month. The prices indicator surged by 4.2 points
to 63.4, indicating prices continued to rise last month and at the fastest pace
in three months.